INNOVATION AND VENTURE CAPITAL EXITS

• 成果类型: Article
• 署名作者: Schwienbacher, Armin
• 署名单位: Universite Catholique Louvain; University of Amsterdam
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2008.02195.x
• 发表日期: 2008
• 页码: 1888-1916
• 关键词: convertible securities; product-market; COMPETITION; creation; valuation; CONTRACTS

摘要

This article analyses how start-ups financed by venture capital choose their innovation strategy based on the investor's exit preferences and thereby form different outcomes in the product market. It considers innovation choices and venture capital exits (IPO vs trade sale) in a setting in which entrepreneurs derive private benefits from staying independent, which is better guaranteed under an IPO. The entrepreneur has incentives to distort the innovation strategy in order to induce the venture capitalist to bring the company public. The analysis generates a number of empirical implications for the link between innovation, valuation, venture capital exit routes and market structure.